39. Mr. H. Wilsonasked the Chancellor of the Exchequer why Her Majesty's Treasury are insisting that potential borrowers requiring capital for dollar-earning assets such as oil tankers should borrow the necessary capital in New York, involving dollar repayments, instead of making the necessary arrangements to allow the money to be borrowed in this country.
§ Mr. BirchThe Treasury does not insist that potential borrowers of capital for dollar earning assets should borrow abroad.
Mr. WilsonIn the particular case of which details were sent to the Treasury, is the right hon. Gentleman aware that finance could have been obtained in this country if Treasury permission had been forthcoming? Does not it seem a wrong 585 policy that, when we can earn dollars in this way, we should not attempt at any rate to raise the finance in this country instead of adding to our dollar obligations?
§ Mr. BirchIf I am right in identifying the company which the right hon. Gentleman has in mind, it was refused a loan by the Ship Mortgage Finance Company, on the ground that, by its constitution, the Ship Mortgage Finance Company cannot lend money for the construction of ships abroad, and it was the construction of ships abroad which was in issue.
Mr. H. WilsonWhile one is well aware of that, is not the right hon. Gentleman willing to look at this in order to see whether, in so far as the Treasury has control over this matter, it could not relax these conditions, bearing in mind that the Exports Credit Guarantee Department is quite willing to provide facilities for third country trade and does not insist on the expenditure in this country?
§ Mr. BirchThe demands on the resources of the Ship Mortgage Finance Company in financing construction in this country are very considerable, and I do not think that it would really help if we were to alter its constitution.